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In: Finance
Here are the abbreviated financial statements for Planner’s Peanuts: INCOME STATEMENT, 2019 Sales $ 4,500 Cost...
Here are the abbreviated financial statements for Planner’s Peanuts:
| INCOME STATEMENT, 2019 | |||
| Sales | $ | 4,500 | |
| Cost | 3,500 | ||
| Net income | $ | 1,000 | |
| BALANCE SHEET, YEAR-END | |||||||||||||||||||
| 2018 | 2019 | 2018 | 2019 | ||||||||||||||||
| Assets | $ | 6,500 | $ | 7,000 | Debt | $ | 833 | $ | 1,000 | ||||||||||
| Equity | 5,667 | 6,000 | |||||||||||||||||
| Total | $ | 6,500 | $ | 7,000 | Total | $ | 6,500 | $ | 7,000 | ||||||||||
Assets are proportional to sales. If the dividend payout ratio is fixed at 50%, calculate the required total external financing for growth rates in 2020 of (a) 20%, (b) 25%, and (c) 30%. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Here are the abbreviated financial statements for Planner’s Peanuts: INCOME STATEMENT, 2019 Sales $ 3,500 Cost...
Here are the
abbreviated financial statements for Planner’s Peanuts:
INCOME STATEMENT, 2019
Sales
$
3,500
Cost
2,700
Net income
$
800
BALANCE SHEET, YEAR-END
2018
2019
2018
2019
Assets
$
4,500
$
4,800
Debt
$
833
$
1,000
Equity
3,667
3,800
Total
$
4,500
$
4,800
Total
$
4,500
$
4,800
a. If
sales increase by 20% in 2020 and the company uses a strict
percentage of sales planning model (meaning that all items on the
income and balance sheet...
Here are the abbreviated financial statements for Planner’s Peanuts: INCOME STATEMENT, 2019 Sales $ 3,500 Cost...
Here are the abbreviated financial statements for Planner’s
Peanuts:
INCOME STATEMENT, 2019
Sales
$
3,500
Cost
2,700
Net income
$
800
BALANCE SHEET, YEAR-END
2018
2019
2018
2019
Assets
$
4,500
$
5,000
Debt
$
833
$
1,000
Equity
3,667
4,000
Total
$
4,500
$
5,000
Total
$
4,500
$
5,000
Assets are proportional to sales. If the dividend payout ratio
is fixed at 50%, calculate the required total external financing
for growth rates in 2020 of (a) 20%, (b)...
Here are the abbreviated financial statements for Planner’s Peanuts: INCOME STATEMENT, 2019 Sales $ 5,000 Cost...
Here are the abbreviated financial statements for Planner’s
Peanuts: INCOME STATEMENT, 2019 Sales $ 5,000 Cost 3,900 Net income
$ 1,100 BALANCE SHEET, YEAR-END 2018 2019 2018 2019 Assets $ 7,500
$ 8,000 Debt $ 833 $ 1,000 Equity 6,667 7,000 Total $ 7,500 $ 8,000
Total $ 7,500 $ 8,000 Assets are proportional to sales. If the
dividend payout ratio is fixed at 50%, calculate the required total
external financing for growth rates in 2020 of
(a) 20%,
(b)...
The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019 Sales $ 250,000...
The 2019 financial statements for Growth Industries are
presented below.
INCOME STATEMENT, 2019
Sales
$
250,000
Costs
175,000
EBIT
$
75,000
Interest expense
15,000
Taxable income
$
60,000
Taxes (at 21%)
12,600
Net income
$
47,400
Dividends
$
28,440
Addition to retained earnings
$
18,960
BALANCE SHEET, YEAR-END, 2019
Assets
Liabilities
Current assets
Current liabilities
Cash
$
8,000
Accounts payable
$
15,000
Accounts receivable
13,000
Total current liabilities
$
15,000
Inventories
29,000
Long-term debt
150,000
Total current assets
$...
The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019 Sales $ 300,000...
The 2019 financial statements for Growth Industries are
presented below.
INCOME STATEMENT, 2019
Sales
$
300,000
Costs
200,000
EBIT
$
100,000
Interest expense
20,000
Taxable income
$
80,000
Taxes (at 21%)
16,800
Net income
$
63,200
Dividends
$
18,960
Addition to retained earnings
$
44,240
BALANCE SHEET, YEAR-END, 2019
Assets
Liabilities
Current assets
Current liabilities
Cash
$
6,000
Accounts payable
$
13,000
Accounts receivable
11,000
Total current liabilities
$
13,000
Inventories
33,000
Long-term debt
200,000
Total current assets
$...
The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019 Sales $ 390,000...
The 2019 financial statements for Growth Industries are
presented below.
INCOME STATEMENT, 2019
Sales
$
390,000
Costs
245,000
EBIT
$
145,000
Interest expense
29,000
Taxable income
$
116,000
Taxes (at 21%)
24,360
Net income
$
91,640
Dividends
$
36,656
Addition to retained earnings
$
54,984
BALANCE SHEET, YEAR-END, 2019
Assets
Liabilities
Current assets
Current liabilities
Cash
$
8,000
Accounts payable
$
15,000
Accounts receivable
13,000
Total current liabilities
$
15,000
Inventories
29,000
Long-term debt
290,000
Total current assets
$...
The 2019 financial statements for Growth Industries are presented below. INCOME STATEMENT, 2019 Sales $ 300,000...
The 2019 financial statements for Growth Industries are
presented below.
INCOME STATEMENT, 2019
Sales
$
300,000
Costs
200,000
EBIT
$
100,000
Interest expense
20,000
Taxable income
$
80,000
Taxes (at 21%)
16,800
Net income
$
63,200
Dividends
$
18,960
Addition to retained earnings
$
44,240
BALANCE SHEET, YEAR-END, 2019
Assets
Liabilities
Current assets
Current liabilities
Cash
$
6,000
Accounts payable
$
13,000
Accounts receivable
11,000
Total current liabilities
$
13,000
Inventories
33,000
Long-term debt
200,000
Total current assets
$...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...
Here are simplified financial statements for Watervan
Corporation:
INCOME
STATEMENT
(Figures in $
millions)
Net sales
$
895.00
Cost of goods sold
755.00
Depreciation
45.00
Earnings before interest and taxes (EBIT)
$
95.00
Interest expense
26.00
Income before tax
$
69.00
Taxes
14.49
Net income
$
54.51
BALANCE SHEET
(Figures in $ millions)
End of Year
Start of Year
Assets
Current assets
$
383
$
340
Long-term assets
286
236
Total assets
$
669
$
576
Liabilities and shareholders’ equity...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...
Here are simplified financial statements for Watervan
Corporation:
INCOME STATEMENT
(Figures in $ millions)
Net sales
$
887.00
Cost of goods sold
747.00
Depreciation
37.00
Earnings before interest and taxes
(EBIT)
$
103.00
Interest expense
18.00
Income before tax
$
85.00
Taxes
29.75
Net income
$
55.25
BALANCE SHEET
(Figures in $
millions)
End of Year
Start of Year
Assets
Current assets
$
375
$
324
Long-term assets
270
228
Total assets
$
645
$
552
Liabilities and shareholders’ equity...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...
Here are simplified financial statements for Watervan
Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $
895.00 Cost of goods sold 755.00 Depreciation 45.00 Earnings before
interest and taxes (EBIT) $ 95.00 Interest expense 26.00 Income
before tax $ 69.00 Taxes 14.49 Net income $ 54.51 BALANCE SHEET
(Figures in $ millions) End of Year Start of Year Assets Current
assets $ 383 $ 340 Long-term assets 286 236 Total assets $ 669 $
576 Liabilities and shareholders’ equity...
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